2024 Supply Chain Areas of Focus

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Feb 15

According to APQC in their 2024 Supply Chain Priorities and Challenges Report, the landscape of supply chain management continues to evolve amidst a backdrop of challenges and opportunities. The performance of 2023 paints a picture of widespread struggle among organizations to meet their business objectives. This scenario underscores a broader trend of heightened competition and shifting market dynamics, compelling businesses to rethink their supply chain strategies.

Key Statistics from 2023

A significant drop from 53% in 2022 to 38% in 2023 in organizations meeting their goals, yet 30% are on track or have met their ROI goals, doubling from the previous year.
65% of organizations anticipate a major impact from big data and analytics, a substantial increase from last year.
All seven supply chain areas increased in focus for 2024 with product development seeing the largest increase (19%).

Three Pieces of Advice for Supply Chains in 2024

Develop a Comprehensive Digital Supply Chain Strategy: A digital supply chain strategy should answer at a minimum the following questions: "How does a digital supply chain support the company's business strategy?", "What are the expected outcomes of a digital supply chain?", "How (and which) technology will help achieve the expected outcomes?", "How are we ensuring the security and transparency of our supply chain?", "How will success be graded?"
Navigate Global Trade and Geopolitical Risks: Develop robust risk management frameworks that include diversification of supply sources and leveraging technology for predictive insights. By employing advanced analytics, businesses can anticipate potential disruptions and adjust their strategies accordingly, ensuring resilience and continuity in the face of uncertainty.
Prioritize Integrated Business Planning (IBP): The significance of IBP has surged as businesses recognize the value of aligning operational planning with strategic goals across all departments. By integrating IBP software that facilitates real-time collaboration and data sharing among supply chain, finance, and sales, companies can ensure that decisions are data-driven and aligned with the overall business objectives.